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A large and growing literature in law and economics analyzes, from an economic perspective, the decision to initiate litigation and the subsequent decision to settle the dispute or proceed to trial.' Rather simple models yield predictions that are frequently both precise and counterintuitive-two highly attractive elements of the academician's enterprise.2 My own initial foray into this field came from a rather unconventional perspective. In a previous article, I demonstrated that bonus payments offered by the state of Illinois to unemployment compensation recipients who quickly returned to work could be analogized to bribes paid to encourage

The Effects of Fee Shifting on the Settlement Rate: Theoretical Observations on Costs, Conflicts, and Contingency Fees